Equity Commonwealth (NYSE:EQC – Get Free Report) and Realty Income (NYSE:O – Get Free Report) are both finance companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, earnings, risk, analyst recommendations, valuation and dividends.
Earnings and Valuation
This table compares Equity Commonwealth and Realty Income”s revenue, earnings per share and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Equity Commonwealth | $60.52 million | 35.40 | $91.16 million | $0.39 | 51.18 |
Realty Income | $4.72 billion | 10.87 | $872.31 million | $1.08 | 54.47 |
Realty Income has higher revenue and earnings than Equity Commonwealth. Equity Commonwealth is trading at a lower price-to-earnings ratio than Realty Income, indicating that it is currently the more affordable of the two stocks.
Profitability
Net Margins | Return on Equity | Return on Assets | |
Equity Commonwealth | 82.00% | 2.09% | 1.96% |
Realty Income | 17.89% | 2.36% | 1.35% |
Institutional and Insider Ownership
96.0% of Equity Commonwealth shares are held by institutional investors. Comparatively, 70.8% of Realty Income shares are held by institutional investors. 2.1% of Equity Commonwealth shares are held by company insiders. Comparatively, 0.1% of Realty Income shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Volatility and Risk
Equity Commonwealth has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, Realty Income has a beta of 0.99, suggesting that its share price is 1% less volatile than the S&P 500.
Analyst Recommendations
This is a summary of current recommendations and price targets for Equity Commonwealth and Realty Income, as provided by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Equity Commonwealth | 0 | 0 | 0 | 0 | N/A |
Realty Income | 0 | 8 | 6 | 0 | 2.43 |
Realty Income has a consensus price target of $63.92, suggesting a potential upside of 8.66%. Given Realty Income’s higher possible upside, analysts plainly believe Realty Income is more favorable than Equity Commonwealth.
Summary
Realty Income beats Equity Commonwealth on 8 of the 13 factors compared between the two stocks.
About Equity Commonwealth
Equity Commonwealth (NYSE: EQC) is a Chicago based, internally managed and self-advised real estate investment trust (REIT) with commercial office properties in the United States. EQC's portfolio is comprised of four properties totaling 1.5 million square feet.
About Realty Income
Realty Income, The Monthly Dividend Company, is an S&P 500 company and member of the S&P 500 Dividend Aristocrats index. We invest in people and places to deliver dependable monthly dividends that increase over time. The company is structured as a real estate investment trust (“REIT”), and its monthly dividends are supported by the cash flow from over 15,450 real estate properties (including properties acquired in the Spirit merger in January 2024) primarily owned under long-term net lease agreements with commercial clients. To date, the company has declared 644 consecutive monthly dividends on its shares of common stock throughout its 55-year operating history and increased the dividend 123 times since Realty Income’s public listing in 1994 (NYSE: O).
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